The document summarizes the results of a market analysis conducted for The Old Wagon Saloon & Grill restaurant. A survey of 38 customers found that 89.5% rated the atmosphere as welcoming and 81.6% found the staff to be attentive. However, the restaurant needs to address weaknesses like being overcrowded during sports games when they are short-staffed, lacking marketing of hosted events, and not updating their menu or adding desserts. The analysis also finds that the restaurant could better utilize social media and optimize their online listings to attract more customers.

1. Fall 08
The Old Wagon Saloon & Grill
1
Marketing Frontier Inc.
[ C o m p a n y A d d r e s s ]
IMC Plan

2. Communication Market Analysis
The Old Wagon Saloon & Grill's strengths are its friendly staff and laid back atmosphere.
Marketing Frontier Inc. conducted a survey at the Old Wagon Saloon & Grill to determine the
relationship between friendly staff and its atmosphere to people's desire to return to the
restaurant. A total of thirty-eight customers were asked to indicate whether or not the staff was
attentive on a scale of 1 to 5 (1 being not attentive at all and 5 being exceptionally attentive). To
check what customers' impression is on the atmosphere at the Old Wagon, the Marketing
Frontier asked customers to rate it by circling 1 of 5 adjectives provided (welcoming, relaxing,
vivacious, unpleasant, or boisterous). They were also asked to identify with whom they visited
the restaurant; whether it was alone or with friends and/or family. Furthermore, customers were
able to rate the level of noise on a typical night, name their favorite food selection out of the
menu and state whether or not they thought a dessert menu is necessary.
Lastly, the survey respondents were asked to tell us if they would visit the Old Wagon
Saloon & Grill again. A total of 89.5% of the customers rated the atmosphere as welcoming
which suggests they felt at ease while visiting the Saloon. As for the staff, 81.6% of customers
rated the Old Wagon's staff attentive which suggests their strength in maintaining a friendly staff.
Therefore, the staff and atmosphere are the two particular strengths of the Old Wagon Saloon &
Grill. Along with these, the Saloon is a small family-owned, one-of-a-kind establishment proud
to represent an oldies western style and quality service.
The Old Wagon Saloon & Grill is known for its unusual clash between decorative western
style and contemporary fraternity games such as beer pong and shuffleboard. It is the only
restaurant/bar in downtown San Jose that has such entertainment, closely related to the typical
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3. college student’s weekend activities. The saloon is located at the end of San Pedro Square which
gives it room to shine with its wooden logo and unique style compared to other restaurants in its
vicinity. The large parking lot, free with validation, right across the street makes it easy and
convenient to park, cross, sit and eat/drink at the Old Wagon Saloon & Grill.
One of the most valued things, that the Old Wagon Saloon offers, is a spacious outside
patio where customers enjoy the beautiful weather when it permits, are free to smoke a cigar or
hang out by the few fire pits. Although their food selection does not feature exotic spices or
flavors, their hand selected ingredients and interesting pairing make a delicious meal. The Old
Wagon’s strong selling point comes from the wide range of beer selection at their full bar. The
bartenders are known to be very friendly, attentive and with a good memory in efforts to make
the customers welcomed back. The large beer mugs are “a favorite” of local customers. This
strength and the pleasant staff are mentioned in more than 55% of customer reviews on Yelp.
The number of staff is sometimes not enough during an event at the Old Wagon Saloon which is
mentioned in more than 58% of the reviews on Yelp. The restaurant needs to have a balance
between continuing to establish itself as bar and grill while capitalizing on its strengths in order
to attract more customers who will value its rebellious sense of décor and outstanding serving
staff.
As seen through primary research and customer reviews on Yelp and Google Places, the
Old Wagon Saloon & Grill is often crowded, especially during Sharks games. This is one of
their major weaknesses. Due to its location in “Sharks territory” and the TVs strategically placed
in various places on the inside and outside of the restaurant, it is one of the frequently visited
restaurants before and during games. Although this may seem as a profit making opportunity as
it attracts many Sharks fans and a cheerful crowd, it can sometimes give off an unpleasant vibe
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4. to some customers. About 34% of customer reviews on Yelp mention turning away from the
place due to an overwhelming crowd and bad service. This idea in the mind of the customer
needs to be altered as there is generally a large crowd during peak hours and featured games,
when the restaurant may be short on staff. Those customers who were disregarded by
overwhelmed staff often leave and do not come back. They fail to realize that while the place is
crowded, it is difficult for the staff to be able to keep everyone of the customers happy. While the
service is known to be great, the shortage of staff when needed can make it seem like the service
provided is bad. The Old Wagon Saloon & Grill can easily change this if they staff a few more
people during peak hours or Sharks game season.
Marketing of their hosted events is another weakness that The Old Wagon Saloon & Grill
can tackle. Their western theme and spacious indoor and outdoor seating allows the restaurant to
be a host for a variety of events. Such events include live band performances of all genres,
private parties and others of the sort. Although The Old Wagon Saloon & Grill has an event
calendar on the website, unless a consumer specifically decides to visit their page, no one will
ever know an event is happening at the saloon. Currently, the Old Wagon Saloon & Grill does a
poor job marketing its events to the local community. The primary method used is word-of-mouth
which often does not allow for a large new customer base, but rather focuses on its regular
customers. For example, San Jose State University's campus is only a few blocks away from the
restaurant and yet only 22% of the students asked to fill out a survey knew what the Old Wagon
Saloon & Grill was and where it was located. Tapping into this large customer segment of SJSU
students can be a great asset to the overall customer base of the Old Wagon. Marketing out their
events to the college campus would definitely attract more new-comers to this key hangout spot
right in downtown San Jose.
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5. The Old Wagon Saloon & Grill's menu has also been identified, by customers who took
the Marketing Frontier survey, as a weakness. They state no visible new additions or updates in
the menu in more than 2 years. Keeping customers on their toes with new food selection every
quarter of the year or alternative food choices can be an enticing factor for them to return again.
Another way to include variety is to alternate two different menus for every quarter of the year.
Western recipes can also be weaved into the menu selection. Also, customers have complained
that there is no dessert menu. Although this may seem as a way to differentiate from the
competition, the Old Wagon needs to reconsider the addition of a few delicious desserts to top of
the meal and create a positive experience for customers.
In an ever-changing technological environment, primary communication with consumers
has moved to the internet. The dramatic search for information has exposed consumers to
information being available at their fingertips. The Old Wagon Saloon & Grill has not utilized
this method of communicating with its current customers and future prospects. Although the
restaurant has a website and is trying to establish an online presence, it is not quite there yet. It
has to utilize social media as this is one of the most popular ways to personally connect business
with consumer.
The Old Wagon Saloon & Grill has a Facebook page with 1,827 "likes" and makes
frequent status updates about events and specials. There is no Facebook icon link on their
website, which makes it difficult for customers to connect with the restaurant via Facebook. The
Old Wagon however does not have a Twitter account or a blog for those excited customers who
love to talk about where they are and what they are doing. This limits the internet buzz
generated about the Old Wagon Saloon as there are no functioning avenues for instant feedback
and/or comments except customer reviews.
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6. The saloon also has a business listing on Yelp, Google Places and Foursquare which help
customers locate the restaurant, view its hours of operation and go to directly to the website.
Optimizing these listings across the internet with the correct name, address and phone number
will help the website retain relevance and come up on search engines more often. The restaurant
website itself is a poor representation of what it has to offer; from its open bar selection,
American cuisine, friendly environment to a variety of entertainment. It fails to communicate
what makes the place different than other restaurants in the area. By focusing on the target
markets that use social media to obtain information, the Old Wagon Saloon will have the ability
to reach a wide variety of customers. This will entice them to visit the restaurant and experience
the vivacity in the atmosphere. By utilizing social media networking with customers, the saloon
can reach more people and inform them of on-going specials and fun events. The Old Wagon
will create a particular type of relationship with the customers by fostering frequent
communication.
Opportunity Analysis
The Old Wagon Saloon & Grill is often missed by local businesses due to the high
number of local restaurants and catering services available from different vendors. In order for
The Old Wagon to increase its business over the competitors, they need to establish more
innovative ways to attract customers. For example, targeting the local businesses in downtown
San Jose is one strategic method. By partnering with local businesses for premier catering
services, a relationship can be easily established. There are more than 80 businesses in the area
which can be targeted with direct promotions and advertising materials, custom designed. There
are a few key businesses that can serve as valuable partners such as Deloitte, San Jose Silicon
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7. Valley Chamber of Commerce, and the US Market Access Center. Creating specific menus for
each business' needs and budget will initialize a partnership valuable to the longevity of the Old
Wagon Saloon & Grill’s restaurant business. Depending on how successful the few initial
catering partnerships go, the Old Wagon can expand and connect with more of the surrounding
businesses. As one of the primary market segments of customers, businessmen around the area
need to be well attended to and feel connected to the Old Wagon Saloon. The partnerships
should include some type of special promotions and incentives for local businesses. This will
further enhance reciprocity from customers as they will feel a sense of obligation toward the
restaurant and will visit more often.
Target Market Analysis
The Old Wagon Saloon will primarily focus its marketing efforts on three target
markets: Generation Y Fans/Sports Fans, College Students/Party Goers, and businessmen.
Through a survey conducted by the Marketing Frontier Inc., The Old Wagon Saloon & Grill
attracts many Sports fans whose age ranges between 18-35 years old. This market is important to
the business’ customer analysis because it draws in new customers for every game broadcast.
The sports fans seek a fun environment in which they can meet new friends and hang out with
friends. The main focus of this segment should be providing sport fans a memorable experience
through special deals on food and drinks. Communication needs to focus on keeping sport fans
loyal to the Old Wagon Saloon. Positive word of mouth is the most effective tool to spread the
positive feedback about the business.
The second target market is college students and party goers in general. Through the
survey conducted, the Marketing Frontier Inc. concluded that college students and party goers
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8. make up the majority of the crowd at the Old Wagon Saloon after 10:00 pm. Due to the Old
Wagon Saloon & Grill’s location in downtown and near a California State University it is an
attractive place to people looking to having a good time. The communications goal for this
segment is to attract more college students and make sure that they have a fun and memorable
experience at the Old Wagon.
Finally, the third segment is the business employees. Since the Old Wagon Saloon in
located in the heart of downtown San Jose, many business employees have their lunch breaks or
hold corporate events at this venue. The Old Wagon Saloon & Grill’s patio, location, size and
food selection offers a wide variety of options for businesses and their employees.
Communication with this segment needs to include contacting local businesses with restaurant
services and events that are catered to businesses.
Competitive Analysis
Due to the fact that the Old Wagon Saloon & Grill has been established as both a
restaurant and a bar, it has two types of competitors in its vicinity. Initial research was done
through Google Places listings on the closest in distance competitors such as 71 Saint Peter
Mediterranean Grill, Firehouse No.1 Bar & Grill, The Old Spaghetti Factory, Peggy Sue's,
Sonoma Chicken and Los Cubanos Restaurant. It is important to track the efforts of competing
firms to attract customers and retain current customers to be able to respond to changes in the
marketplace.
Primary research helped evaluate methods and strategies competitors employ to interact
with customers. Methods range from limited promotional materials through outside advertising
agencies or in-house distribution to a high level of online marketing use. The primary internet
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9. use includes SEO optimization, back-link analysis as well as online social networks which are
key aspects of a successful internet interaction with customers.
Very few of the restaurants and bars in the downtown San Jose area use traditional
advertising methods such as flyers and paper coupons in magazines, newspaper advertisements
and radio or television ads. Some of these restaurants who have a full bar utilize consumers'
favorite Happy Hour specials and daily house specials, as it is the most common way of enticing
consumers to grab an appetizer or pair a lunch sandwich with a soup or salad. Most of the
competitors have moved towards online marketing methods of communicating with their
customers. There they have the ability to reach a high number of consumers on many different
platforms such as Smartphones, tablets and personal computers. With consumers integrating
information from various different sources, restaurants have to be visible everywhere in order to
overstep the competition.
Overall, the competition has primarily focused on internet advertising and promotions
with limited use of traditional media. Secondary research was done through Google Places
listings, on the closest in distance, competitors. The first customer reviews that show up on the
Google Place listings range from good and bad, with emphasis on the food and overall
experience of each restaurant. There is specific input from customers on the service aspect of
each restaurant which is the most important part of a service-based business. The customer
reviews showed a similar impression from the competing restaurants; not great but with a few
things that stood out in each location.
The Old Wagon Saloon & Grill's main competitor in the downtown San Jose area is its
next door neighbor, the Firehouse No. 1 Bar & Grill. The Firehouse No.1 Bar & Grill received
slightly more customer review count on both Yelp and Google places. Although neighbors in
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10. location, both restaurants are located in the heart of San Pedro Square, a historical hangout spot
in downtown San Jose where many events are hosted throughout the year. Therefore, both
places enjoy equal amount of visits from students, businessmen, and Sharks' fans tapping into the
source of customers the city offers. The look and feel of the Firehouse No. 1 Bar & Grill is
modern, appealing to a younger crowd with its contemporary interior design. Their menu has a
balanced combination of appetizers, entrees as well as desserts. Prices range from $6.00 for
French fries and onion rings through $18.99 for N.Y. Strip Steak in a black pepper and whisky
demi glaze. It is priced similar to that of the Old Wagon Saloon, although with less choices
available in certain categories. Firehouse No. 1 bar & Grill even offers dessert to end a hearty
meal. Although it has only 1 sweet selection, it still offers a limited choice as opposed to The
Old Wagon, whose dessert menu currently does not exist. However, The Old Wagon offers a
greater variety of burger selection and salad compared to the few choices in Firehouse No.1 Bar
and Grill.
The Firehouse No. 1 Bar & Grill's website holds the same atmosphere as the place itself
with its interactive web design highlighting the stylish look and experience. The navigation set
up of the categories on the website suggests a constant update and content refreshment. The
categories and the few pictures imply the ability of the restaurant to host a variety of crowds such
as specific events, happy hour rush and parties. There is a consumer award system set in place
and positioned right in the middle of the website, at eye-level to which a customer can sign up to
earn points and receive “cool” awards. The Old Wagon Saloon & Grill's website on the other
hand emphasizes "the old west charm" apparent at the location which appeals to a slightly
different crowd. The website does not contain pictures of the food or of events they are known to
host such as The Good, The Bad and The Ugly Theme Party.
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11. Customer Analysis
The current customer age ranges from 21 to 35 predominantly throughout the day. There
are three segments that make up the customer base throughout the Old Wagon Saloon. The first
segment is the partygoers. These individuals are primarily college students from the local
colleges and universities. They are a part of the Generation Y segment. The Old Wagon Saloon
& Grill has to target this segment in particular with current music trends. Hip-hop, current rock
and the occasional country should be alternately playing throughout the bar. Another way to
connect with this segment is through the interactive drinking games such as Beer Pong, which is
set up on a nightly basis outside on the patio. Based on the 20 surveys taken, the main attraction
for this segment is the nightlife scene. Through the survey, this segment made it obvious that the
food is not a primary concern, even though the restaurant is open for both lunch and dinner. The
main attraction for them is the night scene and drinks.
The second segment is the avid sport enthusiasts. This group ranges from generation Y
and some part of Generation X. This segment usually comes from the local neighborhoods in San
Jose to enjoy sporting events that are broadcasted on a continuous basis throughout the bar on all
seven flat screen televisions. The Old Wagon Saloon & Grill captures this customer segment
with the available televisions in clear view from every seating arrangement throughout the
restaurant. The environment of the bar fits well for this segment because it is spacious and
relaxed depending on the sport event broadcast. This customer group comes to the restaurant at
all times of the day, depending of the sport program schedule. The eating style consists mainly of
appetizers throughout the day and beer orders. These customers come to the Old Wagon Saloon
& Grill to relax, enjoy the atmosphere and cheer for their teams.
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12. The third market segment consists of the Business Professionals. This segment is also a
part of the Generation Y segment. However, customers who belong in this group are graduates
and are mostly working within the remedial area of Downtown San Jose. This main focus of this
group is on the lunch and dinner aspect of the Old Wagon. They come in for business lunches or
grab a quick bite after work. The wagon wheel captures this segment well with its lunch special
items as well as the ability to set up private dining events for businesses.
Due to the fact that the Old Wagon Saloon & Grill has only been open for three years the
number of former customers is not too large. The customers within the three segments may shift
up from the partygoers and sport enthusiasts to business. Both segments may experience a high
loss in number of customers due to relocation because of a job. The Old Wagon Saloon & Grill
fosters a laid-back environment which keeps customers coming back. The restaurant can gain a
high return rate on customers by creating social media channels of communication in order to
stay connected with the customers within the area. By posting updates and creating events that
keep the customer interested, the Old Wagon Saloon & Grill can stay current with customer
trends. These efforts will lower the possibility of losing customers.
In order for the business to continue thriving, the Old Wagon Saloon needs to focus on
capturing future customers on a constant basis. Offering events, promotions, and other incentives
to bring customers into the bar will be a key component to continuous growth. An important
incentive to bring future customers into the restaurant would be birthday specials for the
partygoers. Since there are numerous colleges in the area, offering a discounted drinks
promotion or free drinks to 21st birthdays will attract more and more customers. The promotion
will leave a positive impression on the customer because of the special treatment for choosing to
celebrate an important birthday at the Old Wagon.
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13. The Old Wagon Saloon also needs to promote more near local schools such as San Jose
State University. Many students who are looking for a fun place to go on the weekend or for a
night out would consider going to the Old Wagon. The 30,000 plus students who attend SJSU
and other college students from the area are large target market to pursue in order to bring in new
customers. This will also help expand the reach of customers in the remedial area. A cost
effective way to promote to the schools is through social media, the Spartan Daily, and ads
throughout campus with upcoming events or promotions. This will capture the attention of
potential customers. Another future customer segment would be competitor customers. By
determining the reasons why those customers prefer the competition over The Old Wagon
Saloon & Grill will help alter marketing strategies accordingly. One major reason for this could
be the lack of customer awareness of the restaurant services. Because of the size and location,
customers may have not seen the restaurant when driving by. Implementation of local
advertisement and promotions will help create brand awareness and attract competitor’s
customers to explore the Old Wagon Saloon and Grill.
Market Positioning Analysis
The surveys and questionnaires that were filled out by customers helped the Marketing
Frontier Inc. understand the expectations and thoughts that customers and business employees
have about The Old Wagon Saloon and Grill. This allows the Marketing Frontier Inc. to give
detailed information on the IMC plan based on customer’s thoughts and expectations. From the
survey data, 88.5% of customers rated the atmosphere as excellent for gatherings and 85.6%
rated the staff excellent. Because of the relevancy in this data, the Marketing Frontier Inc. will
use this information in promotion strategies and the strategic positioning of the restaurant.
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14. Corporate Strategies
Marketing Frontier Inc. will position The Old Wagon Saloon & Grill as an atypical local
bar & grill, offering a wide selection of beers, with friendly staff in a laid back western
atmosphere. The friendly staff will enhance the welcoming atmosphere to shadow over that of
local competitors. Local businessmen will enjoy a lunch and drink pairing, while partygoers and
sports fans will marvel at the appetizer selection, fun crowd and variety in alcoholic beverages.
The outside space will attract customers who love to dine out on a nice day and smokers who
enjoy a sip of old whiskey with a cigar. The Old Wagon Saloon & Grill will be a host to new
customers discovering the combination of exceptional staff and pleasant atmosphere.
Corporate Image Strategy
The corporate image for the Old Wagon Saloon & Grill has been designed with an
understanding of what the company stands for and how it is perceived in the marketplace. The
primary component of the saloon & grill’s image is the consumer perception of what it offers as
a local restaurant. The quality of the service is the most important aspect of the restaurant
business and they definitely have strength in this area with the friendly and attentive staff. By
being pleasant, helpful and professional, the staff shows excellent direct communication with the
customer. Customers value and appreciate being treated as the most important person of all the
operations of a restaurant. Without the customer, a restaurant will not exist. Therefore, the
customer should be the number one priority for a business in this category. The corporate image
of the saloon should be based on advertising, promotions and other forms of communication as a
service based company.
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15. The corporate image also emerges with a relevant corporate name and logo; easily
recognized and remembered. The name suggests the theme the restaurant has succeeded in
maintaining; old western and wooden feel with a sense of modernity. Marketing Frontier Inc.
chose to keep the name as it discovered its strength and value in the eyes of the customer. It is
an implied corporate name containing recognizable words that covey what the company does.
The name sets an attitude and tone which is the first step toward creating a personality.
For this reason, Marketing Frontier Inc. designed the improved logo to model a piece of
wood paired with the city background emphasizing the key location but keeping the essence of
the western past. Furthermore, the silhouette of the covered wagon adds to the western look and
feel of the saloon. The wagon is known as an icon of the American Old West. The logo is
designed to be compatible with the corporation's name. Keeping the colors of the logo simple
yet relevant to the style the restaurant portrays is a management decision of the Marketing
Frontier Inc. The gray, tan and black work well together, highlighting certain aspects of its
representation while adding a personal touch. It is a piece of the past with a modern splash of
graphic design which creates a symbolic representation of the Old Wagon Saloon & Grill. As a
one-of-a-kind restaurant, the Marketing Frontier Inc. decided to leave the logo a bit more
complicated than a traditional business logo; again, to add to the corporate image development.
A well-known corporate image often offers consumers a positive assurance of what to expect
when they visit the restaurant and experience their service first hand.
In addition, the Marketing Frontier Inc. suggests adding a few more western decorations
inside the restaurant to maintain that feel and separate itself from its close competitors. Although,
the music selection in the place greatly varies from day to day, it is important for the Old Wagon
Saloon & Grill to begin adding a totally different technique by putting on dub-step or a little of
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16. bit of techno music genres to their sound tracks. This will further enhance the idea of clashing
the past with the present with music, décor and entertainment. A highly reputable image will
generate more positive word-of-mouth endorsements, higher level of channel power and
consumer loyalty which will lead to more frequent visits and therefore increase profit for the Old
Wagon Saloon & Grill in the long run.
Brand Development Strategy
Although, not the only mix of a bar and grill in downtown San Jose, the Old Wagon
Saloon & Grill has to emphasize its unique theme and overall feel of the restaurant compared to
that of its competitors. After assessing the reasons behind customer returns, the Marketing
Frontier Inc. projects that in order to maintain its image and develop a unique brand, the Old
Wagon has to emphasize its key attributes such as the distinguishing atmosphere. It is important
for a brand to contain benefits and characteristics that customers value. The Marketing Frontier
Inc. developed the tagline of "Helping forget the present with a taste of the past" for the Old
Wagon Saloon & Grill; once again to emphasize the interesting mesh between American Old
West and modern fraternal party look-a-like. The combination of past and present suggests
longevity in the eyes of the consumers as it is easy to change the business direction as time goes
by because the image and brand created will always carry a sense of the past. This combination
also suggests that there is place for both and older and younger crowd at the saloon; each liking a
different aspect of this restaurant business. Having the ability to touch and personalize its brand
in different ways to the different customer segments is an advantage the Old Wagon needs to
maintain in the long run.
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17. Brand Positioning Strategy
The Marketing Frontier Inc.’s vision is to develop a brand that cultivates a stronger brand
position in the marketplace, by accentuating the Old Wagon Saloon & Grill’s best qualities and
characteristics. The goal is to set the service providing aspect of the restaurant apart from the
competition. In order to do that the Marketing Frontier Inc. found a unique selling point with
which the Old Wagon can break through conventional business models of this category and
sustain brand success. The selling point of the Old Wagon Saloon & Grill is its atmosphere,
unlike any other, which customers prefer over the typical bar and grill setting that other
restaurants offer. When there is something interesting to the overall experience of dining or
simply hanging out at such a place, customers find it easier to recall and thus continue visiting.
The tagline conveys a message to the customers that the past will always be a part of the present
as it has shaped today. The present can often be forgotten by remembering a few old lifestyles.
This particular positioning makes the restaurant adapt to changing environments by always
carrying the past within the new and current times, making it easier to communicate and relate to
customers.
Channel/Distribution Strategy
Channel Strategy
By developing two strong relationships with suppliers, the incoming orders of food and
beverages will maintain a consistent flow of business. Currently, there are no problems with the
chosen suppliers; however keeping consistent contact with them is important to a continuous
business relationship. The Marketing Frontier Inc. will suggest connecting with a few local
bakeries to supply The Old Wagon Saloon & Grill with a limited selection of desserts; to help
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18. complete their full menu and keep their sweet tooth customers happy. Selecting one key bakery
to supply cake and cookies will be enough to give customers a choice of ending a meal
traditionally. Suppliers of alcohol need to be kept informed of the inventory at the Old Wagon
Saloon on a monthly basis to monitor consumption and predict and/or design future orders
accordingly.
Distribution Strategy
The distribution channels of the Old Wagon Saloon & Grill will be matched to their
pricing strategy and sales process to maintain business consistency. The Marketing Frontier Inc.
designed a system where the main focus is on in-house business with exclusive distribution of
catering services during seasonal events. In order to maximize profits, the strategy is to tap into
new customer segments during certain seasons and select holidays, all while maintaining its
current sales at the location. The exclusivity in catering will attract new businesses and further
enhance the established brand of the restaurant. With an ability to create personalized catering
menus for each business depending on type of budget and occasion, the Old Wagon Saloon &
Grill can offer customers various choices. This will make customers return to use catering
services again for future needs.
Business to Business Strategy
Catering services need to be enhanced and highly specialized. They will also be designed
specifically for local businesses to fit different needs and budgets. The Old Wagon Saloon &
Grill's business-to-business strategy is to establish partnerships with carefully selected local
businesses to become the premium caterer for events and occasions. Through such partnerships
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19. and contracts, the Old Wagon will secure business customers for longer periods of time. With
establishing key partnerships, the Old Wagon Saloon & Grill can utilize a cross promotion
strategy of catering for businesses while promoting their business and asking the same in return.
Both sides will see direct benefits from such partnerships which hopefully will enhance the
customer base for the Old Wagon by expanding word about the business to more customers.
Public Relations Strategy
The Marketing Frontier Inc. has designed a Public Relations strategy for the Old Wagon
Saloon & Grill that will help manage its publicity and all other communications between
customers and the business. The main goal is to maintain its welcoming atmosphere and continue
to create a pleasant experience for its current and potential customers. As a restaurant, the service
provided is the most important aspect to customers. Therefore, when the customer is happy and
satisfied from their experience with the restaurant, they become the most valuable source of
positive public relation messages. This positive image needs to grow from inside the business
through keeping employees happy by offering them incentives such as a free lunch or dinner
every month or a “buy one, get one free” beer every three weeks. The satisfied employees will
transfer their positive energy to making sure customers are attended to accordingly. This is why
components of a public relations strategy need to be integrated to work directly together.
Another component of the PR strategy designed for the Old Wagon Saloon & Grill is to
engage in local events promoting awareness for certain causes such as the downtown San Jose
Making Strides Against Breast Cancer walk every October or the Multiple Sclerosis walk in late
April. By picking a few causes to represent by putting a pink menu out for national breast cancer
month or a splash of orange décor during Multiple sclerosis awareness month, can help better
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20. establish their name as a proud supporter of a cause. Customers will then directly relate to the
business once they see support for important causes and efforts to end diseases, from businesses
such as this one.
Public relations management is directly tied with local media and reporters to whom the
Old Wagon Saloon & Grill needs to be connected with. After establishing a close relationship
with such representatives of the media, it is easy to distribute press releases with on-going
promotions and popular events at the venue. These press releases may serve as igniters to local
newspapers and magazines who may decide to feature articles about the restaurant and its laid
back atmosphere; a local favorite spot.
While the main goal is to receive positive PR, online listings, blogs and forums need to
be monitored in order to be able to respond to negative media and reviews from customers.
Being able to respond directly to negative PR is especially important for quick strategies to
overcome it with good PR. During Sharks' game season and scheduled events at the Old Wagon
Saloon, the public relations efforts need to be increased accordingly to match the saturated flow
of customers. There does not need to be an extensive budget for Public Relations efforts, but a
simple task can be assigned to a few employees as part of their responsibilities. Some of these
tasks may include writing a few press releases, volunteering to be the contact person with
specific media contacts and monitoring social media outlets accordingly. This way the
employees will feel more engaged with the business and gain more knowledge of the business
operations while upper management utilizes their time to promote the business in the best way
possible.
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21. IMC Management
IMC Objectives
The objectives of the IMC Plan for The Old Wagon Saloon and Grill will be brand
awareness, customer loyalty, and an increase in traffic flow and sales. The Marketing Frontier
Inc.’s main concern is to raise The Old Wagon Saloon revenue by 25% within one month
timeframe. That projection will bring The Old Wagon Saloon from $150,000 to $200,000 in
revenue for their monthly statement.
Marketing Frontier will also focus on increasing customer traffic flow by increasing
brand awareness. The goal is to create 35% more brand awareness, which expectantly will
increase the traffic flow by 25%. Our objective is to enhance the customer’s experience about
The Old Wagon Saloon, and to keep them coming back repeatedly. We suggest to keep the
western them and plan strategic promotional events that will bring positive results.
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22. Budget
The total budget for The Old Wagon Saloon is $ 6,943.25 per month. The Marketing
Frontier Inc. believes that The Old Wagon Saloon should operate in one month intervals to
ensure to keep attracting new customers.
The budget is broken up as follows:
Advertising: $4982
Sales Promotion: $1528.50
Personal Selling: $1254
Events and Planning: $180.00
________________________________
Total: $7944.50
Marketing Frontier has allocated 32.80% of the budget towards Generation Y/Sport fans,
43.50% of the total budget to target college students and party goers, and 23.50% to target
businesses and business employees.
Agency Selection
The ideal advertising agency for The Old Wagon Saloon & Grill is one that focuses
closely on the goals and objectives of the business while utilizing the limited resources it has,
such as money. Most importantly, a smaller agency would have the ability to work directly with
the Old Wagon Saloon to design and implement strategies for improvements in business. A small
agency like the Marketing Frontier Inc. which specializes in custom building of marketing plans
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23. specific to the needs of a business. An external agency which can work on a limited budget, yet
achieve optimal results will be the best choice for the Old Wagon Saloon & Grill.
Integrated Online Communication Strategies
While the goal is to attract new customers, it is important to retain communication with
The Old Wagon Saloon & Grill’s current customers. Direct communication happens at the
location, when the customer has already chosen to be there. Establishing a solid online presence
with a working website, social networking and organic visibility is important to sustain
communication with customers. A current and consistent flow of information about the business
on the company website, Facebook, Twitter, blogs, and e-mail will help engage customers. The
integrated information on all channels of communication will help establish a relationship with
the customer and foster returning visits to the restaurant.
Target Market 1 - Sports Enthusiasts
The first segment is the Sports Enthusiasts. This segment contains a range of all ages
including early part of generation Y and some of Generation X target. The sports enthusiasts
segment comes from all local areas within San Jose. It may be the biggest segment because of
the amount of individuals who enjoy watching sports, with the help from the large number of
Bay Area sports teams. The demographic of sports enthusiasts within the Bay Area is much
larger compared to other parts of California. This segment can be easy to capture and gain high
profits from. The customer purchases more products and received more service due to the length
of time each event consumes. As stated earlier in the report, this segment is mainly an appetizer
or small meal customer, with heavy beer consumption. The majority of the customer base is the
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24. early generation Y who live within the immediate area of San Jose. They are mostly established
single individuals or with families. They come to the Old Wagon Saloon & Grill for a change in
environment; to “get away” and enjoy a sports game of their liking. The Old Wagon Saloon &
Grill accommodates the Sport customer segment with its large number of televisions and
constant broadcasts of all sports. The Sports Enthusiasts market segment is a large and
potentially very profitable segment that the Old Wagon Saloon can capture through events,
promotion, and upkeep of overall environment.
Consumer Promotions- Sports Enthusiasts
Barrel Raffle
The city of San Jose is close to many sports teams such as the San Jose Sharks, San Jose
Sabercats, San Francisco 49ers, San Francisco Giants, and many more throughout the Bay Area.
With such a variety in sports teams, there are many avid sports fans of both genders and all ages.
The Old Wagon Saloon & Grill has an opportunity to capture the sports enthusiasts market
instantly. With the saloon’s abundant amount of televisions, it is an ideal place to watch sporting
events. In order to pull the sport enthusiasts into the restaurant, the Old Wagon will have to offer
raffles and contests to win free tickets to games around the Bay Area.
The promotion would be set on a monthly basis, with tickets changing depending on the
season of the each sport. The promotion would be located near the entrance of the restaurant with
a old fashioned wood barrel. On top of the barrel, information sheets will be able to fill out.
These sheets will ask for a name and e-mail address. These tickets will be drawn at the end of
each month for prizes. In addition, these tickets will also give the saloon up-to-date information
about customers in order to send more information and upcoming promotions to the customers.
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25. With this feature, the Old Wagon Saloon & Grill will be able to build a substantial data
warehouse; giving them the capability of staying connected with current and former customers.
Depending on the saturation of upcoming sports events, the prize tickets will range in the number
of prizes given away each month. The average winner will receive 4 tickets for the upcoming
game.
Fantasy Duels
The Old Wagon Saloon & Grill is not a chain or a large business. This positioning gives
them the advantage to be a friendly and personalized restaurant and bar. The saloon can become
involved with the customers on a more personal level compared to other businesses that are
larger or corporately owned. With this in mind, a promotion that the Wagon would invest in is
the development of fantasy leagues throughout the year with prizes that are sufficient enough to
keep the customers excited and motivated to continue coming to the restaurant.
The fantasy leagues will be designed specifically for each sport throughout the year. By
setting a weekly meeting time to go through the league standings and determine a weekly winner
will be the first step. Then a discount on the tab for the night will be given to that individual
winner. The development of the leagues would be divided up with an initiation rate of about
$20.00 dollars, which will cover the entire season. The customers would have to provide their
information and e-mail in order to participate within the leagues. With access to the e-mail
addresses, the Old Wagon Saloon can provide updates on events and the overall league. There
will be a fantasy league for each sport throughout the year in order to keep a continuous
customer involvement with the saloon. The league winner will receive a prize of sports gear or a
$200.00 gift certificate to a sports affiliated store that is close in relevance to the current fantasy
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26. league. For example, for the basketball fantasy league, the grand prize would be a gift certificate
to Foot Locker or a custom jersey of their team of choice. This will help develop a strong
personal relationship between the business and customers. Furthermore, it will create a buzz and
incentive for future customers who enjoy fantasy leagues to participate. Finally, this promotion
will bring in high profit margins for the restaurant due to the heavy traffic and time spent at the
restaurant during each week working on the leagues. The name for this promotion would be
“Fantasy Duels”, which keeps the theme strong and creates a mental competition for those sport
fanatics.
Advertising
Based on the size of the business, the Old Wagon Saloon & Grill would not invest in an
external marketing firm to capture the sport enthusiast market segment. In-house advertising
would be most cost effective. With in-house advertising, there would be a consistent brand and
company culture being portrayed throughout the ads. A major method of in-house advertising
will be through social media. With the use of Facebook, Twitter and other social media channels
of communication, the Old Wagon Saloon & Grill will be able to capture the sport enthusiasts
segment at a minimal cost. Print advertisements will be used to promote the “Barrel Raffle and
Sports Duel” as an advertising element to help reach the large sport segment. The Old Wagon
Saloon & Grill will not be able to compete with large local corporations such as The Old
Spaghetti Factory, BJ’s, TGI Friday’s, and Dave and Busters. However, with strategic
advertising schemes, the saloon can easily capture the sports segments against its competitors
such as Firehouse No. 1 Bar & Grill and San Jose Bar and Grill.
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27. Advertising Goals and Budget
The advertising goal for of the Old Wagon Saloon & Grill is to reach the maximum
number of customers within the sport enthusiast customer segment at the lowest cost. Along with
this, another goal is to create customer knowledge of the restaurant culture and develop a viable
reputation as a “go to” location for sport enthusiasts, all at minimal costs. Starting with the local
school paper of San Jose State University, the “Spartan Daily”, the Marketing Frontier Inc.
suggests inserting a printed ad into the paper at a rate of $10.25 per column . The ad would
present the two promotions of “ Barrel Raffle” and “Fantasy Duel”. With an initial plan of
running the ad in 10 issues, with selected days of Tuesdays and Thursdays each week, the total
cost would be $102.50. A 30 second advertisement on a local radio station such as KSJO priced
at $899.00 can provide another method of spreading information. With description of the
upcoming promotions, the radio ad will foster a wider reach of customer awareness.
Development of a Facebook page and a Twitter account that are linked to the website will be
very cost effective in advertising efforts of the company. Posting on the site and updating social
media channels on a daily basis with events, promotions and current status about sport events
will attract many customers to the saloon. This will also who represent the culture and so called
“personality” of the Old Wagon Saloon. Designing and distributing flyers to customers when
receiving the bill and leaving flyers at local sport recreation stores will help promote the
upcoming events. This saturated promotion and distribution efforts will result in a higher retain
rate of the Old Wagon Saloon. The flyer can be easily developed by using services for making
flyers such as NextDayFlyers.com. For 2,000 colored flyers, the price would total to $106.75.
This would substantially improve company recognition around area to the target markets.
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28. Creative Brief
The goal with the advertisement of the flyers for the creative brief is to first and most
importantly increase brand awareness. The Marketing Frontier Inc. projects an increase in the
sport enthusiasts segments retention rate of the Old Wagon Saloon. Also, customer base should
increase by 100% in the very beginning of the new campaign. With the new advertising
campaign, the Marketing Frontier Inc. plans to have the Old Wagon Saloon double in profits
from this segment alone, creating higher profit margins and allowing for possible future
expansion possibilities in the long run. With two campaigns of the “Barrel Raffle” and “Fantasy
Duel”, the ability to hit the target customer segment will be far superior to the Old Wagon
Saloon’s competition.
Advertising Design
With the development of two promotions, the cost effectiveness to make a flyer for each
promotion would be too much based on the current size of the business. The location of the
Barrel Raffle will be near the front of the restaurant, allowing large amounts of customer
interaction. The design will be a medium size wooden barrel with forms placed on top, allowing
the customer to fill out with their personal information in order to participate. Then the customer
would drop the completed form in the open slit on the top of the barrel. This will signify entrance
into the raffle.
The larger promotion, the “Fantasy Duel” will be featured on the flyers designed
specifically for the sport enthusiasts customer segment, with a consistent theme of The Old
Wagon Saloon & Grill. The size of the flyer designed is 5.5 inches x 8.5 inches (front only
design). At the top of the flyer the new signature of the Old Wagon Saloon & Grill graphic is
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29. displayed, giving a clear and apparent representation of where the flyer came from. The main
title is “First Annual Fantasy Duel” with intent to capture the attention of the target market
segment. In efforts to maintain the theme of the Old Wagon Saloon & Grill, the background is
featured as an old western style bulletin board. Below the title is a runoff of the company tagline
of “Forgetting the present, with a taste of the past”. The new line, specific to the promotion is,
“Take off that suit and strap on Your Boots”, implying a more relaxed setting for the customer.
Below that, there is a brief description continuing the western theme throughout the entire
design. Near the bottom, the website and Facebook links are provided, giving the customer a
clear and simple way to learn more about the promotion. At the bottom in smaller print is the
address and number of the Old Wagon Saloon in order to capture new customers and provide
specific contact information. Scattered on the flyer are images of the local sport teams around the
Bay area, expressing and capturing the eye of the target market segment; highlighting that the
promotion is sports related. This flyer will be distributed to customers in the check booklet when
customer pays the bill. The flyer will further be posted throughout the bar and distributed to
local sporting good stores in order to gain customer reach throughout San Jose.
Personal Selling/ Alternative Marketing
Since the Old Wagon Saloon & Grill enjoys its one-of-a kind nature, the advantage it has
compared to large corporations is the personal relationship the employees establish with the
customers. This plays a vital role in capturing the identified target market segments on a lifetime
basis. Personal selling and relationship building to create lifetime customers will be in the hands
of the employees and their ability to interact with the customer. The employees, the theme, and
the overall laid back atmosphere in a western style helps build that personal customer
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30. relationship. Implementation of the promotions will substantially contribute to the relationship
building as well. With this in mind, the employees can easily connect to customers and sustain a
lifetime customer relationships. Employees will also travel to surrounding sporting good stores,
such as Sports Basement, Mel Cottons, and Big 5 Sporting Goods to help distribute coupons of
upcoming events and thus create brand recognition. Employees will be dressed in American Old
West theme attract attention which will help elevate the brand.
Permission Marketing
Permission Marketing will be built through the promotions as well as the E-active
marketing efforts on Facebook. With the customers filling out the cards for the raffle as well as
registering for the Fantasy Duel, a box will be provided asking permission to receive more
information on events and coupons. This gives the Old Wagon Saloon the permission to send out
updates and information to the customers. Developing a monthly e-newsletter, including
information on sport events that will be going on at the bar will extensively enhance the lifetime
customer value and customer relations with the business. In order to achieve effective permission
marketing, the Old Wagon Saloon must stay current with its promotions and website content in
order to engage the customer’s interest in the business.
Frequent Customer Program
In order to build relationships with frequent visitors, the implementation of a frequent
customer rewards program is a must. The program will consist of two combined reward
programs, depending on the type of customer. The first would relate to the bar, frequent
customers who spend more the $50 per tab will receive a $25 dollar voucher through their e-mail
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31. for their next restaurant visit. This provides customer incentives to continue coming back and
spending a particular amount in order to get something in return. It will also build the customer
relationship while spending time in the bar. The second frequent customer rewards program will
focus on the grill/restaurant aspect of the business. The program design will be a set up as a point
system. With every meal purchased, points will be recorded accordingly. Depending on the price
of the bill, the amount of points will be calculated. For example, if the bill was $50- $60 the
customer will receive 5 points which will be received via e-mail. Consequently, a bill of $100 to
$110 will receive 10 points and so forth. Once the customer has accumulated 100 points, they
will receive a choice between two free appetizers and choice of any drink, or one entrée and one
drink of their choice. This will again help build customer relationship and give the Old Wagon
Saloon the ability to stay connected with the customer through e-mail and other forms of E-active
communication. It will be up to the customer to inform the waiter/bartender of the reward
program they are involved in, through verbal notification as well as written on the receipt in
order to keep accurate accounts of points and visits.
E-Active Marketing
The Old Wagon Saloon & Grill should be using their website as well as Facebook fan
page as the main form of E-Active marketing to the customers. In order to successfully connect
with a large number of current and potential customers, the saloon must take immediate action
with establishing a solid social media presence. Keeping the website content up to date with
current events and promotions will keep the customers involved and informed. For the sports
enthusiasts target market, using the Facebook page to update broadcasted games will invite
customers to come down and watch the event at the bar. Creating a personal log-in on the
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32. website or real time stats diagram for those customers who have entered into the Fantasy duels,
will give them a reason to check the website on a regular basis. This creates higher web traffic
for the site and will in turn promote more “click-throughs” the website pages for upcoming
events or promotions. Using a well-designed E-active marketing plan is the most cost productive
source of marketing for the Old Wagon Saloon & Grill.
Budget For target Market:
Advertising in Spartan Daily
Advertisement of promotions: $10.25 per issue x 10 issues = $102.25
Advertising on Radio:
30 second slot on local radio: $899.00 for thirty second time slot
Promotion For the Barrel Raffle:
Basic Personal form sheets: $0.04 per sheet x 2000 sheets = $80.00
General Admission Game Tickets: $20.00 per ticket x 4 = $80.00
Promotion for Fantasy Duel
Promotional Flyer: $0.05 per Flyer x 2000 flyers = $106.75
Weekly Winner 25% off tab: 25% off tab x ~ $50 -$100 = ~ $12.50- $25.00
Grand Prize at end of league: $200 Gift certificate x 4 = $800.00
Frequent Customer rewards Program
$25 drink voucher after
5 consecutive $50 tabs: $25 drink voucher x ~ 10 people = ~$250.00
2 free appetizers and one drink: ~ $10.00 drink x ~(2) $8.99 app x ~10 people
or ~$279.00
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33. 1 free drink and 1 entrée after ~ $10.00 drink x ~ 13.99 x ~10 people
Accumulation of 100pts = ~ $240.00
Annual Total: ~ $2,583.00 - $1,710.50
Customer relations and lifetime value outweigh the costs substantially. Another factor which has
not been included is the amount of money being spent by the customers while participating in
each promotion in order win the prizes or receive other promotions. These promotions may be
high in price, but in order to capture and substantially enhance awareness, in particular the sports
enthusiast customer segment, money will need to be spent initially. If promotions goals are
achieved, there will be a substantial increase in profit margin for the Old Wagon Saloon, a
considerable rise in customer acquisition, a leap forward in company awareness throughout San
Jose, and hefty rise in customer traffic.
Methods of Measuring and Evaluation
To obtain a measurement of productivity, surveys would be most effective method.
Sending out a survey to the preferred customers who are on the Permission Marketing list, asking
about quality and customer satisfaction will collect primary customer data. Also, a public survey
offered at both the location as well as online through the website and Facebook page will provide
constructive feedback. These surveys would be most effective if they were updated on a monthly
basis in order to keep the information relevant. Developing individual surveys for each target
market segment is the first step to allowing questions to be better answered by the customers.
Implementing “a secret shopper program” will also help measure performance of employees and
honest opinions from customers. A final method of measurement and evaluation is a physical
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34. suggestion box that customers can drop off comments in at any time. An E-active way to
implement something like that would be by setting up an online suggestion platform such as a
blog where customers can leave feedback. Giving customers the opportunity to suggest possible
improvements, management may gain more insightful customer data. If implemented correctly
the Old Wagon Saloon & Grill will prosper and stand above the competition within its market.
Target Market 2: Business Professionals
The Old Wagon Saloon &Grill is located in the heart of San Jose’s business district.
During lunch and early dinner hours, many business professionals tend to gravitate towards the
Old Wagon Saloon & Grill for its atmosphere and good food. It is an easy and accessible area to
grab a bite and hang out with friends and clients during lunch or dinner. During the daytime, the
Old Wagon Saloon & Grill is a magnet spot for business people. This group generates positive
reviews and allows the Old Wagon Saloon to sell alcohol and food, which in turn generates sales.
Customer Promotions
The Old Wagon Saloon & Grill upholds a great atmosphere for business professionals
because of its convenience, great service and modern western styling. A great way to attract
business professionals and build brand loyalty is to host a weekly raffle with people’s business
cards. The raffle will be held once a week or four times a month. The premise is simple: a
business professional drops his/her business card into a jar (7 entries per week, 1 for every day)
and they are chosen at random every Sunday from the jar. The winning businessman then
receives a coupon that is good for one free meal at the Old Wagon Saloon & Grill. This raffle
will create buzz around the business district because the customers will bring their clients to have
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35. lunch with them.
Another form of customer promotion can be used by linking social media strategies. In
the business world, people use social media to receive information at lightning speed. With this,
the Marketing Frontier Inc. will utilize Facebook check-ins as a customer promotion for the Old
Wagon. At the end of each month, the Old Wagon Saloon will be able to see who has checked-in
the most on Facebook. Whoever checks-in the most will have the ability to book the saloon and
grill for their company for free (just the meeting space) or have a 30% coupon off of anything at
the Old Wagon Saloon. This promotion will generate social media buzz and keep business
professionals interested for posting on Facebook as well as leaving comments which will help
evaluate promotion effectiveness.
Advertising
The Old Wagon Saloon emphasizes that it is a place where businesses and business
professionals can have a good time with their co-workers and clients. The message theme of the
advertisement will project that the Old Wagon Saloon is a convenient venue for co-workers,
business professionals and clients can meet to conduct business operations.
Advertising Goals and Budget
The advertising goal for this particular market segment is to entice business
professionals to dine at the Old Wagon Saloon and promote the use their facilities for corporate
events and client events. The first round will be done through posting advertisements for five
straight business days in the San Jose Mercury Newspaper. After the first initial promotional
push, the Marketing Frontier will be posting an advertisement once every two weeks. Each time
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36. it will vary in regards to advertisement placement. The cost of a 4x4 inch blank and white
advertisement is $134. This advertisement will be placed primarily in the business sections of the
Mercury News. The total budget for the advertisements will be $670.00 for the first week (5 ad
placements) and then $804.00 over the course of the next 3 weeks of the first month. This form
of advertising is the most cost-effective way to ensure targeting people in the business sector to
view the amazing events happening at the Old Wagon Saloon & Grill.
Creative Brief
The objective and appeal of advertising to business people is to bring in more revenue
and to allow businesses to conduct any type of company gathering at the Old Wagon Saloon.
Business professionals go out to lunch with co-workers and/or clients. Providing these
professionals with an atmosphere in which they can enjoy casual dining, great food and different
setting of the western theme is important for this type of customer.
Personal Selling &Alternative Marketing
Business professionals come to the Old Wagon Saloon & Grill during lunch and dinner
to relax and dine casually. During the course of the promotional period, the Old Wagon Saloon
can send bartenders or waitresses to visit different businesses at lunch hours dressed in cowboy
western wear. These workers will hand out limited time coupons (varying from 10% - 20%) to
the businesses and their employees. This will not only build business- to- business relationships,
but it will also add a personal connection between employees of each business.
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37. E-Active Marketing
During our promotional period, we will rely heavily on Facebook and Twitter updates.
These social media channels will be maintained by the managers to ensure proper function. Such
updates will ensure customer awareness of what is taking place at the Old Wagon Saloon &
Grill. We will also use the Facebook check-in system to track how many people are checking-in
at the Old Wagon Saloon and Grill. Promoting “check-ins” will create more social buzz about
the Old Wagon Saloon and Grill. Twitter will be our main source of providing instant
information to our customers while Facebook will be used to inform customers about events with
more detailed information needed.
Budget
Print Advertisements 1st run - $134 for 4
business days. 2nd run -
$134 for 6 business days
(two every week for first
3 weeks)
$134x 5 = $670 and $134x 10= $804
Raffle 1 free meal = $22.00 4 weeks x $22 = $88
Free conference
reservation
Booking fee = $75 Book fee for area = $75
30% off coupon for Fb
Check-in
30% any regular item =
$1.20-$5.50 (low-high)
$1.20-$5.50 per month cost
Personal Coupons 20% any regular item =
$0.80 - $3.60 (low - high
$0.80-$3.60 per coupon used, 50 x $0.80 =
$40 50 x $3.60 = $180
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38. price)
Grand Total $1,862.50
Many Business Professionals use the Old Wagon Saloon & Grill venue to meet and
discuss business. Because of this, the Old Wagon Saloon needs to promote drink and food
specials. Business professionals are a constant source of revenue due to the Old Wagon Saloon’s
strategic location in downtown San Jose. The Marketing Frontier Inc. will budget 23.40% of the
total IMC budget towards this target market.
Methods of Measurement and Evaluation
The method of measurement in this target group will consist of how many business
cards are received in raffles, how many Facebook check-ins are received per specific time
period, and how many coupons are received from personal selling efforts. Evaluation will take
place one month after the Facebook and raffle programs have been initiated. The Marketing
Frontier Inc. will check the statistics every month and enter them into the data base system. Data
analysis will show if customers have provided positive or negative comments. Our raffle
evaluation will take place at the end of every week and then as a whole at the end of every
month.
IMC Objective Target Market 3: Party Goers
The Old Wagon Saloon & Grill is perceived as a place where young adults go to socialize
and enjoy the night life. These customers seek out fun and entertaining activities. We categorize
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39. these customers as Party Goers, ages ranging from 21 to 35. After observing the bar scene at the
Old Wagon, the Marketing Frontier has considered this the largest market segment as the
majority of the customers fit this criteria. The marketing efforts towards this group should be
maximized. If alcoholic beverages are the main revenue source and are mostly consumed by this
group, then targeting this group will generate more sales and loyalty.
Customer Promotions
The Old Wagon Saloon & Grill hosts many different events and games for customers to
enjoy, but has never hosted a Beer Pong Tournament. Beer Pong is a beer drinking game often
seen at college parties, known to typical college students. A tournament of this sort held once a
week at the Old Wagon may entice Party Goers to visit more often. The tournament will take
place on the patio where it can accommodate a large amount of people. Depending on the event,
the tournament can be arranged in a fun way such as males versus females. Each participant that
enters the tournament will be required to pay a fee of $20 (expense of beer), and the winner of
the tournament will receive a $100 gift voucher (minimum of 20 participants in order to get the
gift card), the Old Wagon custom T-shirt, and a picture posted on the “Wall of Champions”.
Although these prizes might be an initial expense, it is also an effective form of advertising. The
“Wall of Champions” is a great way to entice customers to brag about fun times at The Old
Wagon, which is a strong form of advertising (Word of Mouth). As for The Old Wagon T-Shirt,
it speaks for itself; it brings awareness to those who see the shirt.
Another engaging form of promotion will be a One Hour Group Square Dancing Lesson
once a week, which will take place on Saturdays. This will encourage customers to get together
and enjoy each other’s company while learning how to dance. Party Goers have a more active
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40. lifestyle apart from consuming alcohol. This information was personally collected from talking
to college customers while at The Old Wagon Saloon and Grill; they expressed a high interest in
a dancing area. Incorporating the One Hour Group Square Dancing will not only bring in more
Party Goers, but it will create a fun western atmosphere that will fit right into The Old Wagon
Saloon & Grill’s overall image.
Advertising
The Old Wagon Saloon & Grill is focused on increasing the number of visitors. The
message theme of the advertisement is to convey the notion that the Old Wagon Saloon is more
than just a place to eat and drink; it is a place where Party Goers would want to go to experience
memorable time. It is a place where the customer can forget the present and the future, and
instead enjoy a night with a taste of the past.
Advertising Goals and Budget
The advertisement goal for this specific target market is to raise awareness of the business
and to continue to attract Party Goers. Advertisements will promote the Beer Pong Tournament
and The Free Square Dance Lesson through radio ad commercials and campus fliers. The radio
commercials will be announced on two different stations, Wild 94.9, and KRTY 95.3. The
stations have different types of audience. The goal is to capture both the hip hop and country
listeners. The most popular station that college students tune into is Wild 94.9. Since they are the
higher percentage of the Party Goers segment, it is necessary to have a commercial on that radio
station. KRTY 95.3 is a country station, which already segments the audience of that station to
fit right into The Old Wagon Saloon theme. As for the flyer campaign, the fliers will be
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41. distributed by paid students to other potential Party Goers that attend SJSU and within the
downtown area.
The total budget for the flier campaign is $400 (labor cost plus fliers developed at
www.GotPrint.com). The radio commercial is $2180. Radio ad cost is based on $545 per 60 spot
on a station and these spots are considered to be the amount of time the radio host mention about
the client. Purchases of 120 spots for each of the two radio station will be placed. Also, beer
pong tournament champion t-shirts will cost $5 a shirt at www.vistaprint.com. An order of 20
will be purchased initially, totaling to $100. These shirts will raise awareness of The Old Wagon
Saloon, and the Beer Pong Tournament that takes place there. As for the Free Square Dance
Lesson to the group, an instructor will be hired to coordinate the dance. He or she will be
compensated $100.00 per night for 4 nights per month. Also, total budget for the Wall of
Champions is set at $200.00, which is will be used for a Polaroid camera. This will promote
bragging rights, and Word of Mouth buzz.
Creative Brief
The objective of advertising to Party Goers target segment is to increase the amount of
customers that will go to The Old Wagon Saloon & Grill. Party Goers are often in large groups,
so if one is convinced, the rest will follow. They are often active and seek events to attend.
Providing them with entertainment that they will enjoy will improve customer loyalty and
retention. This will not only increase revenue, but it will also bring good reputation to the
business, which will appeal to new customers.
Advertising Design
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42. The radio commercials for The Old Wagon Saloon & Grill will be done by the DJ of that
station during rush hour on Thursdays, Fridays, and Saturdays. Due to higher expense, it will be
done in one voice with no jingle. An enthusiastic voice will announce how exciting and fun the
events will be at The Old Wagon Saloon. It will mention the Beer Pong Tournament and the Free
Square Dance Lesson to attract Party Goers. Fliers will be designed with the strategy of “Sex
Sells”. The fliers feature an attractive woman in cowboy attire on each side of the text. Minimum
text is written down the center to entice more interest to The Old Wagon Saloon. Fliers will be
sized 4 inches by 6 inches, and will be printed in black and white at www.GotPrint.com. As for
the Beer Pong Champion T-shirt, it will be in white with The Old Wagon Saloon logo on the
back and the “Beer Pong Champion” text in the front, and design of cups and a ping pong ball in
the center. Correspondingly, the “Wall of Champions” for the Beer Pong Tournament will look
like an western “Wanted” poster with Polaroid pictures of the winners on it. All of these tied
together help elevate the company image by keeping the same theme throughout the business
operations and marketing strategies.
Personal Selling/Alternative Marketing
The Old Wagon Saloon & Grill strives to create an atmosphere where all customers will
enjoy a night out. Furthermore, customers that come in for their 21st Birthdays the same night
will receive a free 32 ounce draft beer or a mixed drink. This will make it a memorable night for
the customer, in hopes for them to return.
E-active Marketing
Facebook and Twitter will be the main source of e-active marketing that The Old Wagon
Saloon will keep up to date. This will inform customers the type of events that will be happening
42

43. every night there at the bar. It will also update and remind customers about nightly entertainment
at The Old Wagon Saloon.
Budget for Target Market
Radio Commercials $545 per 60 spots, 4 times $545x4 = $2180
College Student
$15/hour, 2 hours a day, 8 days (Thursday,
$15x2x8= $280
Passing Flyers
Friday) for one month
Fliers 5000 Fliers (www.GotPrint.com) $0.024x1000= $120
T-Shirts 20 Custom T-Shirts (www.vistaprint.com) $5x20 $100
Gift Voucher $100 Gift Voucher $100x4 $400
Wall of Champions Polaroid One600 Ultra Instant Film Camera
(eBay.com)
$200 $200
Birthday Beers 20 Customers with Birthday $4x20 $80
Square Dance Group
Instructor
Every Saturdays of the Month $100x4 $100
Total $3,460
Since the majority of the customers at The Old Wagon Saloon are Party Goers, we will
allocate 43.5% of the total IMC budget to this target group. Party Goers are the main revenue for
the business, and our efforts to increase awareness of new events to this target group will not
only increase sales, but also elevate the level customer loyalty. Furthermore, since Party Goers’
expenditures are the highest amongst the different target groups, it best to work on ways to keep
the current Party Goers while also increase the number of attracted new customers with these
promotional materials and events.
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44. Methods of Measurement and Evaluation
Method of Measurement on this particular target group will be based on surveys, the
amount of participants that is involved with the Beer Pong Tournament/ Free Square Dance
Lesson, and the total sales compared to sales without the events. Evaluation will take place after
the first month of advertising. Surveys will determine the level of interest in these events that the
customers have as well as opinions and feedbacks given through Facebook and Twitter. This will
ensure the continuity of the promotion. Also, comparing sales from the month without the event
to the one with, will determine profitability and sustainability of this promotion.
Evaluation Metrics
Online Metrics
With the vast use of the internet by consumers, the Marketing Frontier Inc. recommends
setting up an integrated system for monitoring online presence. A SEOMOZ account can be used
to track search engine optimization through the tools and resources available. The
comprehensive web crawl and data-services API can further show link graph analytics. Through
this software, the Marketing Frontier Inc. can evaluate how the Old Wagon Saloon & Grill's
website stacks up compared to competitive websites such as Firehouse No.1 Bar & Grill and the
Old Spaghetti Factory. Site analytics in comparison show the number of times that information
about each of the restaurants has been shared on Facebook and Twitter, & Google+ which can
give the Old Wagon Saloon a sense of where they stand compared to their direct competitors. It
is important to know what competitors are doing so that the Old Wagon Saloon can model
marketing and advertising initiatives after the competition and be on the same level as the
competition, and even aims higher.
44

45. These analytics can further identify areas that may need special attention, especially
social networking channels of direct communication with customers. Yext is another website
tool that can help the Old Wagon Saloon & Grill monitor its name, address, phone number
(NAP) consistency across the internet. Once the report is run, it generates real time information
about business listings and attempts to have the same data on all channels of communication.
Maintaining consistency is important for online presence. Customer traffic and online brand
awareness can be inspected from a variety of online avenues along with website page rank,
unique visitors and keywords. There are many tools to help with SEO optimization of the Old
Wagon Saloon & Grill's website so that traffic to their website can increase.
Database Analysis
Marketing Frontier Inc. suggests the implementation of a continuous quarterly survey of
customers’ opinions and attitudes toward the restaurant. Some of the things that should be
monitored include customer rating of the atmosphere, the staff, the food as well as the service
provided. The frequency of customer visits should also be recorded in order to examine customer
retention rate. The monitoring of new customers versus returning customer count is another
important statistic to record. This will help Marketing Frontier gage whether or not marketing
and advertising efforts during the given time period helped raise awareness of the grill and its
location. The Marketing Frontier suggests this data is collected every quarter of the year to see
how marketing efforts relate to business success as well as sales. With the complete integrated
marketing communications plan and its implementation over the next year, the Old Wagon
Saloon & Grill should see an increase in revenue.
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46. In order for the Old Wagon to overcome its weaknesses and compete in this market, it
has to be aware of its strengths to use them to the best of their ability. As environments change,
customer target market may also shift depending on external factors and competition. It is
important to maintain a continuous method of evaluation of the business, its marketing strategies,
the effectiveness of advertising and promotions as well as online marketing and customer reach.
The data from each quarter can be entered into a data base; something as simple as an excel sheet
can work well for the initial customer data. Once data is collected for a period of one whole year,
new data can then be monitored and compared to previously collected data to establish certain
marketing efforts' effectiveness and alter future marketing objectives accordingly. The data
collected can also help identify trends and changes in seasonality by having the ability to filter
the data to fit intended marketing objectives for future quarters. Through this analysis, the
Marketing Frontier Inc. can assess the success of the IMC plan for the Old Wagon Saloon &
Grill and make further recommendations.
Appendices
Appendix A: Marketing Frontier Logo Design
Appendix B: Old Wagon Saloon & Grill Business Card
Appendix C: Old Wagon Saloon & Grill Envelope
Appendix D: Old Wagon Saloon & Grill Letterhead
Appendix E: Old Wagon Saloon & Grill Logo Design
Appendix F: Companies near Old Wagon Saloon & Grill
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47. Appendix G: Google view of Old Wagon Saloon & GrillJ
Appendix H: Survey to determine customer opinion and Knowledge
Appendix I: Customer Experience Survey
Appendix J: Comparable Link Metrics
Appendix K: Redesign Menu
Appendix L: Sports Enthusiast Fantasy Duel Flyer
Appendix M: Business Professional Raffle Flyer
Appendix N: PartyGoers Beer Pong Flyer
Appendix O: PartyGoers Beer Pong T-shirt Design
Appendix P: Wall Of Champions Design
Appendix Q: Drink Voucher Design
Appendix R: Sports Enthusiast Budget
Appendix S: Business Professional Budget
Appendix T PartyGoers Budget
Appendix U: Total Budget Allocation
47

48. Marketing Frontier Logo Design
48

49. The Old Wagon Saloon & Grill Business Card
49

50. The Old Wagon Saloon & Grill Envelope
50

51. The Old Wagon Saloon & Grill Letter head
51

52. The Old Wagon Saloon & Grill Logo
52

53. Companies Near The Old Wagon Saloon & Grill
53

54. Google Search of The Old Wagon Saloon & Grill
54

55. Old Wagon Saloon and Grill Survey
What is your first impression When you walk into the Wagon Wheel Bar and Grille?
What makes you want to go to the Wagon Wheel rather then other bars in San Jose?
What do you not like about the Wagon wheel?
What is your opinion on the Theme and style of the Wagon Wheel?
What would you change about the Wagon wheel?
If you could choose one word to describe the Wagon wheel what would it be?
What keeps you coming back to the Wagon Wheel?
Have you ever eaten the food? If so, what do you think?
.
What is different about the Wagon Wheel compared to other bars?
If it had a club night, would you be willing to attend?
What is your favorite thing about the wagon wheel?
How strong they make their drinks for their customers
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56. The Old Wagon Saloon & Grill Customer Experience Survey
The Wagon Saloon staff was attentive to your needs.
Not at all Minimal Somewhat Attentive Exceptionally Attentive
1 2 3 4 5
How would you rate the atmosphere of The Old Wagon Saloon & Grill?
Welcoming relaxing vivacious unpleasant boisterous
When visiting the Old Wagon Saloon & Grill do you normally attend…
By Yourself With Friends With Family With Business associates
How would you rate the level of noise on a given night? (1-5)
Quite Calm Comfortable Noisy Very Loud
1 2 3 4 5
What is your favorite Item from the menu?
Do you think a Dessert Menu is Necessary for the Old Wagon Saloon & Grill?
Yes No
Would You return to the Old Wagon Saloon & Grill again?
Yes No
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57. Comparable Link Metrics
57

58. Yext Listings Diagnostic Report
58

59. The Old Wagon Saloon & Grill redesign Menu
59

60. 60

61. 61

62. 62

63. 63

64. 64

65. 65

66. Sport Enthusiasts “Fantasy Duel” Flyer
66

67. Business Professionals Business Card raffle
67

68. PartyGoers “Peer Pong” Tournament Flyer
68

69. PartyGoers Peer Pong T-shirt Designs
69

70. PartyGoers Peer Pong Wall of Champions
70

71. Gift Vouchers
71

72. Cost
Print/ Radio
Advertismen
t
Barrel Raffle
Fantasy
Duel
Frequent
Customer
Program
Sports Enthusiast Budget
72

73. Cost
Print
Advertisments
Raffle
Free Confrence
Room
Fb Check-In
Business Professionals Budget
73

74. Cost Radio
College Student
Fliers
T-Shirts
Gift Voucher
Wall of
Champions
Birthday Beers
Square Dance
Group Instructor
PartyGoers Budget
74

75. Overall IMC Budget
75
$4,982
$180
$1,528.50
$1,254
Sales Promotion
Personal Selling
Events Planning
Advertising
Cost